The Ethereum Foundation member recently addressed investor concerns following the non-profit’s massive ETH transfer on Friday. This development is particularly significant because the transaction has sparked bearish chatter in the cryptocurrency community, particularly due to EF’s relationship with the Ethereum network.
Transfer of $94 million ETH is not a sell-off – Ethereum Foundation
Ethereum Foundation on Friday deposited 35,000 ETH, valued at $93.8 million, on Kraken, leading to much speculation among ETH. These concerns stemmed from the bearish nature of such massive transactions, as well as EF’s role in the Ethereum ecosystem.
Described as a non-profit organization, EF claims a critical role in sponsoring the technological development of the Ethereum network. Therefore, a sudden ETH offload of this size will certainly attract the attention of investors and market enthusiasts.
IN Posts X on Saturday, Aya Miyaguchi, executive director of the Ethereum Foundation, explained the recent transaction, stating that it does not “equate to a sale” but rather the process of managing the organization’s treasury. Miyaguchi claims that the ETH deposited on Kraken was converted to fiat to settle certain obligations. The EF director also attributed the mass withdrawal of ETH to an earlier reduction in treasury activities due to regulatory issues.
Miyaguchi said:
EF has a budget of ~$100m per year, which is largely made up of grants and salaries, and some beneficiaries can only receive it in fiat. We were advised for a long time this year not to take any treasury action due to regulatory complications, and we were unable to share the plan earlier.
Prior to this 35,000 ETH transfer to Kraken, EF had been selling significant amounts of ETH in 2024, which amounted to 2,516 ETH for $7.4 million DAI. Aya Miyaguchi stated that the Ethereum Foundation will maintain this ongoing ETH sell-off in a “planned and gradual” manner.
ETH Price Overview
According to data from CoinMarketCap, ETH is currently trading at $2,748 with a slight augment of 0.63% over the past day. The second-largest cryptocurrency is currently stuck in a price range between $2,500 and $2,800. If ETH bulls manage to take control of the market, the altcoin could break out higher from this consolidation, with its next major resistance set at $3,560. However, the opposite scenario could result in massive selling pressure that would push Ethereum price down to as low as $2,100.
Featured image from INX, Chart from Tradingview
